Miami's Luxury Condo Boom: Affordable Options Disappear as Sales Dip

Broward County, USA - As we step into the summer of 2025, the real estate landscape in South Florida is shaping up to be quite the spectacle. While the broader condo market seems to be taking a hit, Miami-Dade County’s luxury condo scene is defying the odds with increasing sales. The latest figures suggest a lively atmosphere for what some might call the crème de la crème of real estate.

According to Tampa Bay Times, sales of condos priced at $1 million or more have surged since May 2019. At the same time, overall condo sales in Miami-Dade took a nosedive, dropping by 25% compared to last year. Broward County saw a similar trend, with condo sales down by 24%. It seems high mortgage rates hovering near 7%, along with strict financing requirements, are putting a damper on affordable and mid-market purchases.

The Luxury Market’s Flourish

Diving deeper, the luxury condo market is not only alive but thriving, as highlighted by Condo Black Book. In the first quarter of 2025, the median sales price for luxury condos reached a staggering $1.8 million. Despite a slight decline of 4.7% from last year, sales closed on 364 units remains strong, representing a flat-positive year-over-year change. The average price per square foot for these upscale condos exceeded $1,000 for the first time, showcasing a high demand.

Neighborhoods like Coconut Grove and Coral Gables shone brightly in terms of performance, boasting low inventory levels that indicate a competitive market. On the flip side, Sunny Isles Beach experienced remarkable year-over-year gains, particularly in price per square foot, reflecting ongoing interest in newer waterfront properties. However, the ongoing inventory buildup—currently sitting at 22 months—maintains this segment as a buyer’s market.

Market Challenges Remaining

Even with the optimism surrounding luxury sales, Miami’s overall condo inventory is on the rise, while new listings have taken a dip. This suggests a hesitance from owners to sell, likely driven by the uncertainties surrounding the economy and real estate financing. The median sales price for condos in Miami-Dade remains stable at $425,000, unchanged from last May, but down from $445,450 in April 2025. Broward County mirrors this trend with a median price of $275,000, slightly down from the previous year.

As Gay Cororaton, chief economist for the Miami Association of Realtors, notes, the Federal Reserve’s anticipated rate cuts in the latter half of the year may offer a glimmer of hope for buyers navigating this shifting landscape. This potential easing could enhance affordability, which has been a persistent concern for many wishing to enter the market.

Statistical Insights and Trends

Additionally, the actual sales numbers reveal a contraction in single-family home sales as well. Miami-Dade reported 943 sales in May, down from 1,102 last year, while Broward saw a drop from 1,249 to 1,110 sales.

As buyers and sellers navigate these turbulent waters, one thing is for sure: Miami’s real estate market remains a captivating blend of high stakes and shifting trends. The sharp contrast between booming luxury sales and a slump in the overall market highlights the adaptability of both buyers and sellers, and perhaps points to resilience in the face of changing economic circumstances.

Overall, the luxury condo market offers choices for discerning buyers, while the broader market grapples with challenges. With eyes on economic indicators and the ever-evolving desires of buyers, Miami’s real estate saga is far from over.